Premium Essay

Ford Go Green

In:

Submitted By shirleyjagle
Words 3516
Pages 15
Should Ford Go Green ?

Junwoo Lee - Shirley Jagle- Yaelle Saporta - Arjan Van Berlo- Tomas Duijvestijn - Michiel Van Dongen

I. Who are we ? 1. Background 2. Product line 3. Organizational Structure 4. Figures 5. Mission, Vision and Values

II. Macroenvironement dynamics 1. Macro-environment
- Influences PESTEL 2. Industry Sectoral Dynamics
- Industry characteristics
- Description of the recent sectoral dynamics
- Positioning in the sector
- Porter 5 forces analysis
- Analysis of the competitive position

III. Strategic Capacity Analysis 1. Goals and Targets 2. Analysis of possible Alternative

IV. Presentation of Alternatives 1. Strategic Business Units = GO GREEN 2. Directions and development methods

V. Assessment of Alternatives 1. Cost / Benefit Analysis - Alternatives 2. Implementation Timeline 3. Expected Results

VI. References

I. Who Are We ?

1. Background
Henry Ford founded the Ford Company in 1903. Despite a difficult start, he created 19 new models in the first five years. The company already had an international aspect even then since the rubber is imported from Belgium Congo.
Success finally came with the Ford T in 1908, so much that any advertisement was unnecessary. To produce this model, H. Ford instituted the practice of large scale manufacturing of car and management of industrial Work forces. Such method was named after him, Fordism, in 1914.
Nowadays, Ford is stretched across six continents though it operates mostly in Europe and North America. Its headquarters are in Michigan. We can also safely state that it is one of the largest automotive manufacturers in the world. It employs around 176000 people.
2. Product line
In the automotive industry, the easiest way to do segmentation is to classify the cars according to the type of its

Similar Documents

Premium Essay

Marketing

...Ford SWOT Analysis Ford Motor Company has been a well-established company in the automobile industry since the early 1900’s and has been going strong ever since. Starting on a small-scale, Ford has become one of the leading international automobile makers in the industry, and continues to reevaluate itself in order to gain a competitive edge. One tool that a company can use is a SWOT analysis, which is used to identify internal and external factors that may affect the company moving forward in accomplishing its goals. The internal factors include strengths and weaknesses of the company, while external factors are comprised of opportunities and threats. Each of these areas helps a company determine how they want to adapt to their ever-changing surroundings and how they improve from their current state. A strength that numerous Ford customers can agree on is the brand recognition that it has because it is such a well established global power. The globalization of Ford is has helped it grow and is now established in the largest economies in the world. Along with this comes the customer loyalty, because people develop a sense of trust with Ford once attracted initially by the brand power. Also, the brand is recognizable and similar in perception to many customers because the cars do not vary as much from region to region, somewhat creating a Ford community. The brand power enables Ford to attract the customers initially, and then they are able to develop long lasting relationships...

Words: 626 - Pages: 3

Premium Essay

Ford Case Study

...the automotive industry, Ford wants to reposition itself and its business model regarding as how to better satisfy consumer needs, which is to produce smaller economic cars that the US middle-class customers value. Therefore, it seeks to take a new direction and to bring a revolution to the automobile industry, and to revive its glory years. A number of vehicle programs have been changed, delayed or even dropped throughout 2007. Ford officials believe that the shifts are aimed to get the right products to the market faster, with the emphasis on reducing costs and accelerating product development. 3.1 TOWARDS MORE ECONOMIC VEHICLES Ford’s current business strategy is to make new mobility solutions that are fuel-efficient and environmental-friendly, and at an affordable cost to consumers. By monitoring the US market, Ford has detected a change in consumers’ purchasing behavior: the fact that the sales of trucks & minivans constantly fell since 2004 (the “peak” year), while small cars sales have been growing since the same year. This is a clear indication that the trucks in the US is in its declining stage, whereas smaller cars are favored in consumers’ eye. The ever-rising fuel price is another incentive for future car owners in buying more economical, thus smaller cars. Therefore, Ford’s vision of its short-term to medium-term strategy is that the firm will be able to bring affordable mobility solutions to millions of US citizens. By year 2020, Ford will be able to fully implement...

Words: 4697 - Pages: 19

Premium Essay

Ford Focus Electic - the Future of Transportation

...Lord Ashcroft International Business School (LAIBS) MA Marketing & Innovation Ford Focus Electric – The Future of Transportation Model Title: Marketing Design and Innovation Module Code: MOD001223 SID: 1236789 Academic Year: 2013/14 Semester: 1 1 Ford Focus Electric – The Future of Transportation SID-1236789 Cambridge Attempt 1 ANGLIA RUSKIN UNIVERSITY Assignment Coversheet Student Number: 1236789/1 FACULTY Lord Ashcroft International Business School ASSIGNMENT DETAILS Module Code / Occ / Year MOD001223 / C-1 / 2013/4 Module Title Marketing Design Innovation Module Element 010 - ASSIGNMENT 2000 WORDS To be marked by Submission date (by 5p.m.) 06/01/2014 Submission of this assignment agrees to the following: I understand that the piece of work submitted will be considered as the final and complete version of my assignment of which I am otherwise the sole author. I understand both the meaning and consequences of plagiarism and that my work has been appropriately attributed unless otherwise stated. I have not knowingly allowed another to copy my work. Mitigation – you have 5 working days after the deadline to submit a claim for mitigating circumstances. If there are matters or circumstances which have had a serious adverse effect on your performance in any assessment, you are advised to seek advice from a Student Adviser. Forms are available from the iCentre. WORD COUNT          Disk included (tick) ASSESSMENT...

Words: 2907 - Pages: 12

Premium Essay

Land Rover: a Socially Responsible Company

...competitive advantage. Is the basis for Land Rover’s competitive advantage truly accurate or are they using a clever marketing scheme to target socially responsible consumers? Summary In Land Rover’s Sustainability Report 2009/2010 it states “We commit to continuously improving the environmental performance of our business and products by reducing emissions, conserving natural resources, and optimizing the use of sustainable energy and materials. This is underpinned by our investment in research into cutting-edge environmental innovation” (Land Rover, 2011). Land Rover is using the hot new green marketing concept to highlight their social responsibility and target the consumer who is eco conscience. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. While it may seem that to advertise one’s company as “green” it must include a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Background Founded in 1948, Land Rover was designed with the tough working, never ending job of farming in extreme places in mind. Since its early days and with countless changes in designs and technology, Land Rover is still the epitome of toughness and forward thinking design. Now Land Rover is also addressing environmental concerns with initiatives such as e-Terrain Technologies, Sustainable Manufacturing and CO2 Offsetting...

Words: 1264 - Pages: 6

Premium Essay

Assignment 3

...Alan Mulally, CEO, Ford Motor Company Dr. Obi. Iwuanyanwu BUS520 Organizational Behavior August 8, 2011 Discuss the role of leadership and how it can impact organizational performance. Leadership can have huge impact on organizational performance. The role of leadership is the act of motivating a group of people towards a common goal.   Intelligence, maturity and breadth, achievement drive and integrity are key traits of most successful leaders. Less effective leaders don’t tend to possess these same traits even though these key traits don’t always determine the success of a leader.   In order to successfully lead any team being smarter than their subordinates is a great start while the absences of knowledge that inferior workers have could delay performance.   Effective leaders are driven by completing goals and moving on to the next goal without primarily counting on employees support or motivation to reach them. With the variety of traits shaping the leadership role integrity in opinion is the key trait that can determine if a leader can be successful or not in the long run. Employees very often have a hard time trusting a leader who is hypocritical and doesn’t follow their own values. Honesty and trust can determine the level at which employees will follow the leader without negative vibes. The degree of integrity in a leader reflects the attitude and performance of employees and vice versa. In order for any company to succeed, there needs to be someone to lead...

Words: 1341 - Pages: 6

Premium Essay

Business Analysis

...Ruff April 10,2012 Business Analysis Part Two In this paper, the author will discuss Ford Motor Company’s business environment. The author has reviewed Ford’s income statement, balance sheet, and cash flow to determine the financial health of the company. The author will conduct a benchmarking analysis of the company as well. From reviewing Ford Motor Company’s income statement, balance sheet, and cash flow, the author has learned that the company needs to increase their revenue. Their revenue concerns the author because it is a little low, as compared to other companies, GMC and Toyota. It is lower than that of the other two companies. Toyota’s operating income is low, however, and their assets and liabilities equal to the same amount. GMC’s sales and revenue was very high along with its net income. GMC’s liabilities outweigh its assets though, which poses a very big problem. They are spending more than they produce, which is a bad thing. This makes their financial health very poor in that regard. To summarize Ford’s financial health, it could be better. Their gross profit is very low, in comparison to the two other companies. Their operating income leaves much more to be desired. Their income after taxes is more than their income before taxes. Their total assets outweigh their liabilities. They have quite a bit of debt. Moving forward, Ford can use this information to create strategies to increase their revenue. Some strategies include...

Words: 955 - Pages: 4

Free Essay

Bus 520

...“Alan Mulally, CEO, Ford Motor Company” ASSIGNMENT # 3 Introduction This document presents to discuss questions posed based on the integrated cases provided in the text regarding “Alan Mulally, CEO, Ford Motor Company. The sections discussed below are based on the reference case scenario presented in the book, where CEO Alan Mulally’s leadership style and his organizational performance are being evaluated. Discuss the role of leadership and how it can impact organizational performance. Leadership influences organizational performance depending on the level to which the leaders enables manages and team to plan, organize, control and act effectively. It is always up to the leadership to see and evaluate the strengths or weakness of any organizations. If the company is strong in financial terms that it has got a great leader or the reverse is always true as well. To achieve greatness, a leader must understand the human element involved, of course adding their own and carefully watch the details every step of the way. A strong leader must know whom they can trust, seek reliable information and make decisions, often without hesitation that will have an overall effect on the direction, speed and all other future decisions. Obviously, this is not an easy task to perform through the long journey but still manageable with creative strategies and hard working. In a large complex organization and environment only a 100% fully engaged human leader could hope to achieve these...

Words: 2056 - Pages: 9

Free Essay

Pinto

...begin sloshing onto the road around the car. The buckled gas tank would be jammed up against the differential housing (that big bulge in the middle of your rear axle), which contains four sharp, protruding bolts likely to gash holes in the tank and spill still more gas. Now all you need is a spark from a cigarette, ignition, or scraping metal, and both cars would be engulfed in flames. If you gave that Pinto a really good whack?say, at 40 mph - chances are excellent that its doors would jam and you would have to stand by and watch its trapped passengers burn to death. In pre-production planning, engineers seriously considered using in the Pinto the same kind of gas tank Ford uses in the Capri. The Capri tank rides over the rear axle and differential housing. It has been so successful in over 50 crash tests that Ford used it in its Experimental Safety Vehicle, which withstood rear-end impacts of 60 mph. So why wasn't the Capri tank used in the Pinto? Or, why wasn't that plastic baffle placed between the tank and the axle -...

Words: 682 - Pages: 3

Premium Essay

Carmakers Target Generationy

...segment consists of around 71 million with a purchasing power estimated to be $200 billion. With such a sizable population and impressive purchasing power, Generation Y is poised to be that fastest growing segment that could soon outgrow that of baby boomers. Generation Y is educated, diverse, and tech-proficient. This is a unique segment that has unique needs. Asian automakers understand that a company's product can only serve some but not all demographic groups. It is with this in mind that the automakers are focusing on serving generation Y as a distinct segment, with unique needs and preferences. The strategy behind targeting Generation Y (Gen Y) by the Asian automakers seems to be driven by the 80/20 rule. According to Keegan and Green (2011), “ This rule (also known as the law of disproportionality or Pareto's law) suggests that 80 percent of a company's revenues or profits are accounted for by 20 percent of a firm's products or customers” (p.213). Generation Y is a large segment that is still growing and has the potential to sustain the automakers growth now and in the near future. By targeting Generation Y, the Asian automakers are pursuing growth in a country-the United States, where they are already well known and popular rather than in new markets that would take long to turn in profits because of lack brand awareness. Asian automakers could easily attain the 80/20 rule by targeting Generation Y. The...

Words: 1912 - Pages: 8

Premium Essay

Termpaperwarehouse.Com - Free Term Papers, Essays and Research Documentsthe Research Paper Factory

...was hired as CEO of Ford in September 2006, had not engineered, designed, or built any cars. He came from Boeing. After joining Ford, he devised a plan that identified specific goals for the company, created a process that moved it toward those goals, and installed a management system to make sure the company reaches those goals. Mulally demands weekly, sometimes daily, updates. “Alan's style is pretty relentless,” says chief financial officer Lewis Booth, a 31-year Ford veteran. “He says, ‘If this is the reality, what are we going to do about it?' not ‘We're going to work our way through it.'” Mulally's leadership has resulted in Ford making some strategic moves. When Mulally arrived in September 2006, Ford was known mainly for its pickup trucks and the Mustang. The company was on the verge of financial collapse. It lost $12.6 billion in 2006 and another $2.7 billion in 2007. Sensing a recession in 2006, Mulally decided to borrow $23 billion against Ford's assets. Taking on more debt wasn't easy, but the extra cash meant that Ford could say no to government loans when sales declined in 2008 and 2009. He wants Ford to maintain its independence. Mulally is moving to integrate the company globally, despite several failed attempts in the past. In 2010, Ford will be selling small cars (e.g., Fiesta and Focus) in the United States that were developed in Europe. Mulally persuaded Bill Ford to sell off Jaguar and Land Rover and focus its resources on the Ford brand. He sold Jaguar...

Words: 2449 - Pages: 10

Premium Essay

External Rview

...External Environment ICO Ford Motor Corp The increase in global warming is affecting everyone: from the farmer, entrepreneur, small business owner, and large corporations, to the consumers. It is up to the larger corporations to help lead the way in handling the sustainability issues we are facing globally. The concept of sustainability argues that a firm’s ability to continuously renew itself for long-term success and survival is dependent not only upon the greater economic and social system of which it is a part, but also upon the natural ecosystem in which the firm is embedded. (Wheelen & Hunger, 2012, p. 99) Ford Motor Company takes this role very seriously in identifying and implementing solutions to help preserve the world’s delicate resources. According to the Environmental Protection Agency (EPA), Carbon dioxide makes up for 82% of the U.S. Green Gas Emissions in 2013. The EPA has strict regulations and standards regarding how much CO2 emissions automobiles can eliminate. California has also been granted a Clean Air Act waiver. This allows California to implement its own emission standards (EPA, 2015). In Europe, they have a similar government agency called, the European Environment Agency (EAA). Ford Motors has to adapt with the increasing pressures from various government entities to produce fuel-efficient vehicles that have less impact on the carbon footprint. Ford Motors has introduced electric, hybrid, eco-boost, diesel, and flex-fuel options to their...

Words: 2423 - Pages: 10

Free Essay

Impact of Climate Change on Automotive Business

...many researches that the increase in man-made green house gas emission can significantly affect the climate in the world, on every part of the globe. In the last few years, climate change has become the most researched subject in science. The reason is that because climate change can affect significantly to the earth and it has to be taken care of. In a business world, particularly in Automotive Industry, climate change is also one of the must discussed subject, and because of automobile is one of the factors that produce the most CO2 (Carbon dioxide), it become one issue that force automotive industry to change their product to reduce the amount of CO2 emission. Climate change in automotive industry represent both threat and opportunity in the business. It gives opportunity for the car makers to develop a new technology that is more environmental friendly, which can reduce the amount of green house gas emission. It also gives the carmakers to create a more energy efficient in their operations, which can cut the unnecessary production costs. Other opportunity is the fact that they will use this global concern to further research and investigate the use of creating a new energy source, and helping reducing the pollution caused by the use of fossil fuels. However, for automotive industry, climate change does not only provide opportunities but also threat to the business. It is a threat because about 12 percent of all manmade green house gas emission today is in cars and trucks...

Words: 1013 - Pages: 5

Premium Essay

Investing in Ford

...Investing in Ford MGT/521 August 18, 2011 Abstract Choosing the right company to invest, where our money is not only safe, but also multiplies, is one of the toughest challenges for an investor. The potential benefits should outweigh the risks involved. The following is an attempt to put the pros and cons in perspective on why “Ford” is a good choice for a discerning investor. Investing in Ford Ford is an American multinational auto company head quartered in Dearborn, Michigan, that was founded in 1903. Fortune favors the brave. Fortune 500 has placed Ford in the tenth position in the list of the largest American corporations (CNN Money, 2011). A net income of $383 million was reported in the second quarter of 2011, with a pre-tax income of $604 million. (Ford Media, July). But the numbers themselves do not mean much unless there is a comparison with the size of the company. To understand the progress made by Ford, we need to examine the stock price – Today, Ford closed at $11.11 (Yahoo! Finance, August). This figure may not look competitive, when seen in isolation. But when compared to how things were four years back, the progress in phenomenal. In 2008, the shares were as low as $1.01. When placed in this perspective, this is a giant leap for this automobile empire. These statistics show that there has been significant revamping done. In 2010, the company posted its highest net income in more than ten years, the full year net income being $6.6 billion, or $1...

Words: 1549 - Pages: 7

Free Essay

Issues Facing Today's Organizations

...Issues Facing Today’s Organizations Jessica Kemske June 3, 2012 Organizations today face many different challenges. Some challenges are based on the nature of operations and some challenges are more common and are faced by most organizations. A couple of the more common challenges would be technological advances and societal views. In my opinion, technological advances are the biggest issue that organizations face today. If we look back even just ten years ago we have come such a long way with technology. Now someone could just pick up an iPad and have a face to face conference with someone on the other side of the world. Most companies, 20 years ago, didn’t even have websites, nowadays that would be considered appalling. Going back twenty years companies were just developing email. Now just about everyone in an organization must have their own computer or at least have access to one. Twenty plus years ago there was no need for such a large information technology department or computer specialists; now there is a high demand. This demand has required companies to either create or hire an outside entity to provide them with “tech-support.” This requirement costs incredibly large sums of money. Companies have to keep up with modern technology in order to offer services that are compatible with societal needs. One of the technological issues is the lifespan of the equipment. Companies must be able to reinvest and keep up with current technology. This can cause a problem...

Words: 1267 - Pages: 6

Premium Essay

Ford Motor Company a Big Three Giant

...Ford Motor Company a Big Three Giant As a manager of a venture capital group, whose capital gains derived from mutual fund investments, and who seek to invest in Ford Motor Company, and analyzing possibilities of investing in mutual fund profits in Ford Motor Company. The company exhibits strength when recent borrowing occurred from the United States government by two of the big three car manufacturers took place. Ford remained defiant, self-sustaining, determined, and marched forward with current capital, and succeeded furthering profits and sales of Ford’s product line. This is a good indicator of stability-singularly, but there must be an in depth study of the business to obtain pertinent data and justifying investment of venture capital. Currently completing a thorough analysis of Ford’s portfolio topics covered includes stability, weak points, seizing opportunities, and last outside influences threatening the stability of the company. Stability Ford Motor Company is a global automotive industry, which manufactures, and distributes automobiles across six continents. The company also engages in other businesses to include financing vehicles the company sells for its customers (CNN Money.com para. 1). The stock average has risen from $10.59 to $10.66 as of close of business September 19th, 2012 (New York Stock Exchange, 2012). This is a good indicator that Ford is on the rise as a giant among the automobile industry. However, other factors are under advisement, and consideration...

Words: 2614 - Pages: 11